COVID-19 - ECONOMIC ASSISTANCE

The Village of Cottage Grove is striving to stay abreast of the everchanging programs available at the federal and state level to assist businesses and individuals with the economic impacts of the COVID-19 virus. We will update this page with programming information that may benefit those in the Village.

This is a new program funded under the CARES stimulus plan. It provides 100% federally backed loans to help businesses and non-profits pay for payroll, rent, etc. Businesses (including eligible non-profits, sole proprietorships, self-employed individuals, and independent contractors) with up to 500 employees are eligible and they are eligible for loans up to $10 million for payroll and certain other expenses.

If all employees are kept on payroll for eight weeks, SBA will forgive the portions of the loan used for payroll, rent, mortgage interest, or utilities up to 100% of the loan.

Recent legislation has added funding to this program. The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020.

The State of Wisconsin is an eligible area for disaster loan assistance. Assistance takes the form of a long-term, low interest loan to be used for capital needs and normal business operating expenses through the recovery period, up to $2 million direct from the SBA. Loans less than $200,000 can be approved without a personal guarantee. Interest rates are 3.75% for small businesses and 2.75% for private non-profits. Repayments are deferred for 12 months. There is no cost to apply and there is no obligation to take the loan if offered. Loans can be based solely on credit scores. Loans are also available to non-profit entities established as 501(c), (d), or (e).

Borrowers can receive a $10,000 cash advance that may be forgiven if the money is spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, or repaying obligations that cannot be met due to revenue losses. Funds are intended to be made available within 3 days of successful application.

Businesses that applied prior to March 30, 2020 should reapply to be considered for the $10,000 advance or if they did not receive an immediate confirmation number or email confirmation after the initial application was submitted.

NOTE: due to the nation-wide scale of the disaster area, the website is frequently overwhelmed. Try applying during off-peak (evening or overnight) hours and save your application frequently while it’s in progress. Keep your documentation readily available if there is a follow up phone call. Missing or inaccurate information is the biggest reason for delays.

United States Small Business Administration (SBA) – Express Bridge Loans

This program allows approved SBA lenders to provide expedited financing up to $25,000 to small businesses awaiting SBA disaster loans. The bridge loan is repaid when the disaster loan funds are received. Contact your lender to verify whether they are approved to fund this type of loan.

Internal Revenue Service (IRS) – Tax Deadline Moved to July 15, 2020

The IRS has moved the federal tax deadline from April 15, 2020 to July 15, 2020. If you expect a refund you are encouraged to file sooner to receive the refund more quickly.

Wisconsin Economic Development Corporation (WEDC) – Small Business 20/20

The WEDC has launched an initial program for assisting eligible small businesses. WEDC is making $5 million available to Community Development Financial Institutions (CDFI) to distribute grants to existing clients. CDFI’s are lenders who work with underserved communities. Local examples include Forward Commercial Investments, Habitat for Humanity of Dane County, and the Wisconsin Women’s Business Initiative Corporation. If you are already a client of these or other CDFI’s you should contact the CDFI directly to determine eligibility. Not all CDFI’s may participate and the final list of those that are has not been released. Assistance via this program comes in a grant of up to $20,000 targeted to businesses with less than 20 employees and less than $2 million in annual revenue to cover rent and payroll expenses.

We will update this page as additional resources are released to the WEDC or other State agencies for additional assistance programs.

Wisconsin Department of Workforce Development (DWD) – Work Share Program

Instead of laying off workers a qualified employer may implement a plan to reduce hours across a work unit. Workers whose hours are uniformly reduced under an approved work share program receive unemployment benefits that are pro-rated for the partial work reduction. Plan must include the greater of 20 positions or 10% of the employees in a work unit. Reduction may be at least 10% but not more than 50% of normal hours. Full-time and part-time employees are eligible.

Dane Buy Local – Dane County Small Business Pandemic Support Grant Program

Grants ranging from $1,000 to $50,000 available for Dane County small businesses experiencing financial difficulties as a result of the COVID-19 outbreak, administered by Dane Buy Local. Businesses can apply for funding to help stay afloat and retain employees. Small businesses throughout the community are encouraged to apply.

As always, the Cottage Grove Chamber of Commerce is your source for local business information. Follow them on Facebook for the latest news and information.

The Chamber has formed a Business Recovery Task Force. The Task Force is seeking survey responses to gather data on the impact of the virus on community businesses. Please visit the following link to take the survey:

The recently approved CARES Act includes funding for direct payments to taxpayers. Payments are $1,200 for each individual with an income up to $75,000 or $2,400 for a married couple with a joint income up to $150,000, plus $500 for each child. Payment amounts are reduced for taxpayers with incomes above the aforementioned thresholds.

Payments have begun to be dispersed. Visit the IRS website to track your payment:

Intended to help employees experiencing hardship due to COVID-19 outbreak. Provides grants up to $500 to employees impacted by decreased wages or employment loss. Funds are provided on a first-come, first-served basis until funds are exhausted. Eligible recipients worked full or part-time for at least 90 days in the past year, had their primary source of income in the restaurant industry, and are 18 years old or older.